Pacific Cement Limited stops cement production

Pacific Cement Limited has stopped cement production due to breakdown of their machinery however the government has intervened to ensure that Tengy Cement continues with production.

Acting Prime Minister Aiyaz Sayed-Khaiyum says that Pacific Cement stopped production 11 days ago and the only supplier in the market at the moment is Tengy Cement Company Limited.

Sayed-Khaiyum adds that Pacific Cement may come back into production by August this year as a lot of their machinery is over 100 years old.

He also highlighted that government is disappointed with Pacific Cement as they knew about the problem a few months ago that they would stop production and did not see it fit to inform the various stakeholders in the market including government.

He says that Pacific Cement provides up to approximately 80 percent of the cement requirements in Fiji and Tengy Cement provides the balance.

Sayed-Khaiyum had also revealed that Tengy Cement can upscale its production levels but does not have clinker, however Pacific Cement currently has 24,000 tonnes of clinker which it cannot use as the factory is not producing.

The Acting Prime Minister adds that after talks and intervention by Permanent Secretary for Industry and Trade, Shaheen Ali together with the Fijian Commerce Commission through meetings with the various stakeholders and the 2 major cement companies, Pacific Cement has agreed to sell the clinker to Tengy Cement.

He adds that Pacific Cement will sell their clinker to Tengy for $147 per tonne and this will allow Tengy to now produce cement.

Sayed-Khaiyum says this will allow for the production of 14,400 tonnes of cement per month as the current demand for cement required for the construction industry in Fiji is 15,600 tonnes.

He says the government will also allow people to import cement from overseas.